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LexisNexis® Risk Solutions Study Reveals SNAP Fraud Costs Surge to $4.14 Per $1 Lost as Digital and EBT Schemes Escalate
Prnewswire· 2025-09-23 14:13
Core Insights - The volume of fraudulent cases in the Supplemental Nutrition Assistance Program (SNAP) has doubled since 2024, driven by increased digital access and complex eligibility systems [1][4] - For every $1 lost to fraud in SNAP, agencies now incur $4.14 in total costs, an increase from $3.93 the previous year [1] Fraud Trends - Digital channels account for nearly half of all fraud costs, with high volumes of online and mobile applications leading to disproportionately higher fraud losses [5] - Fraud costs rise to $4.18 per $1 lost in multi-program systems, and can reach as high as $4.55 when five or more programs are integrated [5] Operational Challenges - Agencies are facing delays and errors due to overwhelming application volumes, staffing shortages, and outdated systems, with 74% reporting increased errors [5] - Nearly half of the agencies report lower productivity, undermining confidence in eligibility decisions [5] Human Impact - Delayed approvals can lead to hunger, malnutrition, and financial stress for households in need, while also affecting staff morale and increasing turnover [5] Recommendations - Agencies that invest in advanced fraud detection and integrate systems report lower fraud costs of $3.98 per $1 lost and fewer errors [5] - Leveraging real-time data and identity verification can help agencies combat fraud while ensuring timely benefits for those in need [2][4]